Ford denies talks with Geely for Chinese tech in US
What's the story
Ford Motor Company has denied a report by The Wall Street Journal that it was in talks with Geely Automobile Holdings Ltd. to bring Chinese car technology into the United States. A spokesperson for Ford told Bloomberg News that there have been no such discussions or plans with any Chinese automaker regarding technology or platform sharing in the US market. A representative from Geely has not yet responded to a request for comment on the matter.
Unanswered queries
Geely yet to respond to request for comment
The Wall Street Journal had reported earlier that Ford and Geely were considering extending their European partnership to America. However, these talks have reportedly stalled in recent months, the newspaper said. Despite this, Bloomberg reported in February that discussions were still ongoing about potentially using an underutilized plant owned by Ford in Spain.
Market challenges
Chinese automakers face major hurdles in entering US market
The potential entry of China into the US auto industry has been closely watched as companies like Geely and BYD Co. have expanded globally, including in Mexico and Canada. However, Chinese automakers face major hurdles such as high tariffs on their electric vehicles (EVs) and technology restrictions that have kept them out of the US market.
Industry perspective
US auto executives see China's carmakers as major threat
US auto executives see China's carmakers as a major threat because of their tech-heavy, affordable vehicles that have been backed by generous government support. Ford's CEO Jim Farley recently said that allowing Chinese automakers to sell their cars in the US would be "devastating" for domestic manufacturing. He stressed on the need for US government and industry leaders to "really figure out our policy" on how Chinese automakers could eventually enter the US market.
Policy position
Trump administration opposes easing restrictions on Chinese car imports
The Trump administration has been hesitant to remove existing barriers to Chinese cars. Commerce Secretary Howard Lutnick had earlier this month dismissed the idea of Chinese investment in the US auto industry, saying "We're not going to have them here." This further highlights the current administration's stance on keeping a distance from China's growing influence in the automotive sector.